The CEO Who Gave Up His Salary: A Story of True Leadership

A true leadership

Imagine this: The boss of a huge airline, A company with planes flying all over the world, gets to work on a regular city bus. He doesn’t have a fancy driver. At lunchtime, he doesn’t eat in a private room. Instead, he stands in line with everyone else in the company cafeteria.

Haruka Nishimatsu

Haruka Nishimatsu, the former CEO of Japan Airlines (JAL), was one such leader.

When his company was in big trouble and losing a lot of money, he didn’t fire people. Instead, he did something surprising. He cut his own salary. He took a huge pay cut so that, his employees wouldn’t have to lose their jobs.

Effect of 2008 crisis

The Big Problem at Japan Airlines

In the 2008 Global crisis, Japan Airlines was in a difficult position. The company was deep in debt and facing a lot of problems. Most companies in this situation would have laid off many workers to save money. The CEO would probably keep his high salary and benefits.
But Haruka Nishimatsu didn’t do that.
He had a simple belief: A good leader is like a good friend, not a king. He thought that to save the company, he had to get the trust and support of every single employee. He knew that if the staff saw him suffering along with them, they would work harder to turn things around.

Gave up for his employee’s

What He Gave Up

Nishimatsu’s sacrifices were very powerful:

  • He cut his own pay. He reduced 60% of  his salary to around $90,000 a year. This was less than some of his pilots were making. He wanted to show that he was willing to share the pain.
  • He gave up all his fancy perks. He got rid of his company car and private office. He took public transportation to work and sat in an open office with everyone else. This made him easy to talk to.
  • He ate with his team. He ate lunch in the cafeteria just like everyone else. This small action showed that he was a part of the team, not above of them.
Using public transport

The Result of His Actions

Nishimatsu’s style of leadership worked. By prioritise his employees first, he created a feeling of trust and loyalty that money could never buy. The employees saw their leader make big sacrifices for them, and they became more motivated and dedicated to fixing the company.
This story teaches us a great lesson. Being a real leader isn’t about being in higher position or making a lot of money. It’s about humble, being a part of the team, and being ready to sacrifice for the good of everything.

What do you think is the most important quality of a great leader?

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